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The current rebate scheme allows fuel retailers within the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly to register with HM Revenue & Customs to claim back 5p per litre relief on unleaded petrol and diesel for retail sale within eligible areas.

Fuel retailers within the areas concerned can register with HMRC to claim 5p per litre relief on fuel purchased on or after 1 January 2012 for onward retail sale in the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly.

Retailers can make claims on a monthly basis and have 60 days following registration to reduce the cost of every litre of road fuel sold by the equivalent amount of the relief claimed. This is so that all consumers in the areas concerned benefit from the reduction in fuel duty.

The UK Government is proposing to extend the scheme to Anglesey, Gwynedd, Powys and Monmouthshire.

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Sustrans policy advisor Matt Hemsley has spoken to ITV News about the effect 'transport poverty' could have on the Welsh economy.

It comes as Department for Transport figures reveal Wales is the worst-hit part of the UK for fare increases - while also seeing the biggest fall in passenger journeys.

Mr Hemsley told us: "Buses are really important, particularly for people on lower incomes; young people who are struggling with the costs of owning and running a car as the costs of insurance and fuel go up.

A committee of Assembly Members has said that the Welsh Government should have the power to control the regulation of buses and more of a say in our rail networks in order to provide an easy and seamless public transport system.

The Enterprise and Business Committee was told that there is a 'silent problem' of transport poverty across Wales with a quarter of all households without a car. 1.5 million people are isolated and unable to access key services because of inadequate transport, particularly in rural areas.

The Committee believes that people in Wales should be able to use a simple and seamless integrated public transport system for whatever purpose, be it popping to the local shop or travelling across Wales for an important appointment.

There needs to be a greater emphasis on pressing travel operators to work together with stakeholders to co-ordinate timetables, connect services and publish real time information for bus, rail and community transport networks.

– Nick Ramsay AM, Chair of the Enterprise and Business Committee

The Committee's report calls for the devolution of powers controlling rail and bus services to assist the Welsh Government in improving the system.

The Welsh Government has welcomed George Osborne's promise that an announcement on a scheme to improve the M4 at Newport will come in the next two months. But a spokesperson said there are 'important issues that remain to be resolved.'

We have been pressing for an agreed funding package for a strategic enhancement to the M4 for many months. It's very welcome that the Chancellor has expressed support in principle and said a decision will be made on the details shortly. However, no deal has been done yet and we will continue to work through the important issues that remain to be resolved.